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The VUCAlity of Projects: A New Approach to Assess a Project Risk in a Complex World

Author

Listed:
  • Thordur Vikingur Fridgeirsson

    (School of Technology, Reykjavík University, 102 Reykjavik, Iceland)

  • Helgi Thor Ingason

    (School of Technology, Reykjavík University, 102 Reykjavik, Iceland)

  • Haukur Ingi Jonasson

    (School of Technology, Reykjavík University, 102 Reykjavik, Iceland)

  • Bara Hlin Kristjansdottir

    (School of Technology, Reykjavík University, 102 Reykjavik, Iceland)

Abstract

The “projectification” of Western societies has been consolidated by a number of studies and now calls for various adaptations in the managerial framework of project management. Faster rates of change in complex environments antagonize the traditional risk assessment approach and demand a more dynamic approach. A framework commonly used for understanding the challenges of complexity in the modern business environment is VUCA. VUCA stands for volatility, uncertainty, complexity, and ambiguity. In order to mitigate the impact of a VUCA environment on complex projects, organizations and project leaders need to know the type and severity of challenges they are dealing with in each unique project. This study explores the VUCA framework in the context of projects and suggests that the VUCA approach can enhance the conventional risk assessment procedure. The study also drafts an accessible diagnostic tool to assess the VUCA dimensions a project is facing, so that project managers can effectively isolate “fat tail” risk events. The tool is tested on five complex projects in the manufacturing industry and its effectiveness is discussed.

Suggested Citation

  • Thordur Vikingur Fridgeirsson & Helgi Thor Ingason & Haukur Ingi Jonasson & Bara Hlin Kristjansdottir, 2021. "The VUCAlity of Projects: A New Approach to Assess a Project Risk in a Complex World," Sustainability, MDPI, vol. 13(7), pages 1-13, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:3808-:d:526759
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    References listed on IDEAS

    as
    1. Christophe Midler, 1995. "Projectification of the Firm : the Renault Case," Post-Print hal-00262524, HAL.
    2. Marian Bosch-Rekveldt & Hans Bakker & Marcel Hertogh, 2018. "Comparing Project Complexity across Different Industry Sectors," Complexity, Hindawi, vol. 2018, pages 1-15, June.
    3. Midler, Christophe, 1995. ""Projectification" of the firm: The renault case," Scandinavian Journal of Management, Elsevier, vol. 11(4), pages 363-375, December.
    4. F Ackermann & C Eden & T Williams & S Howick, 2007. "Systemic risk assessment: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(1), pages 39-51, January.
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    Cited by:

    1. Alessandro Margherita & Emanuele Banchi & Alfredo Biffi & Gianluca di Castri & Rocco Morelli, 2022. "Beyond Total Cost Management (TCM) to Systemic Value Management (SVM): Transformational Trends and a Research Manifesto for an Evolving Discipline," Sustainability, MDPI, vol. 14(19), pages 1-16, October.
    2. Goerz, Katharina, 2021. "The empowered project manager: Employee perception of empowerment," Journal of Applied Leadership and Management, Hochschule Kempten - University of Applied Sciences, Professional School of Business & Technology, vol. 9, pages 41-60.
    3. Katarina Buganova & Maria Luskova & Jozef Kubas & Michal Brutovsky & Jaroslav Slepecky, 2021. "Sustainability of Business through Project Risk Identification with Use of Expert Estimates," Sustainability, MDPI, vol. 13(11), pages 1-17, June.
    4. Joanna Moczydłowska & Joanna Sadkowska & Beata Żelazko & Carmen Nadia Ciocoiu & Ewa Stawicka, 2023. "Understanding Risk Culture in the Context of a Sustainable Project: A Preliminary Study," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    5. Thordur Vikingur Fridgeirsson & Helgi Thor Ingason & Svana Helen Björnsdottir & Agnes Yr Gunnarsdottir, 2021. "Can the “VUCA Meter” Augment the Traditional Project Risk Identification Process? A Case Study," Sustainability, MDPI, vol. 13(22), pages 1-13, November.

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